The SSC Partnership Balance Sheet Includes the Following Assets on December

question 15

Multiple Choice

The SSC Partnership balance sheet includes the following assets on December 31 of the current year:
Susan, a 1/3 partner, has an adjusted basis of $90,000 for her partnership interest. If Susan sells her entire partnership interest to Emma for $120,000 cash, how much capital gain and ordinary income must Susan recognize from the sale?

• A) $30,000 ordinary income.
• B) $30,000 capital gain.
• C) $10,000 ordinary income; $20,000 capital gain.
• D) $10,000 capital gain; $20,000 ordinary income.

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Definitions:

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A highly intelligent or wise choice made in the context of business operations, usually leading to significant positive outcomes.

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